Correlation Between Ping An and Hua Xia
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By analyzing existing cross correlation between Ping An Insurance and Hua Xia Bank, you can compare the effects of market volatilities on Ping An and Hua Xia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ping An with a short position of Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Hua Xia.
Diversification Opportunities for Ping An and Hua Xia
Very good diversification
The 3 months correlation between Ping and Hua is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank and Ping An is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ping An Insurance are associated (or correlated) with Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Ping An i.e., Ping An and Hua Xia go up and down completely randomly.
Pair Corralation between Ping An and Hua Xia
Assuming the 90 days trading horizon Ping An Insurance is expected to generate 0.98 times more return on investment than Hua Xia. However, Ping An Insurance is 1.02 times less risky than Hua Xia. It trades about 0.06 of its potential returns per unit of risk. Hua Xia Bank is currently generating about -0.03 per unit of risk. If you would invest 5,030 in Ping An Insurance on November 4, 2024 and sell it today you would earn a total of 55.00 from holding Ping An Insurance or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Hua Xia Bank
Performance |
| Timeline |
| Ping An Insurance |
| Hua Xia Bank |
Ping An and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Hua Xia
The main advantage of trading using opposite Ping An and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Hua Xia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hua Xia will offset losses from the drop in Hua Xia's long position.| Ping An vs. Beijing Kaiwen Education | Ping An vs. Jiangsu Phoenix Publishing | Ping An vs. Yili Chuanning Biotechnology | Ping An vs. Changjiang Publishing Media |
| Hua Xia vs. Gifore Agricultural Machinery | Hua Xia vs. Ningbo Construction Co | Hua Xia vs. Sinomach General Machinery | Hua Xia vs. Baoding Dongli Machinery |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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